Quick service restaurant chain Wendy's Co. (NASDAQ: $WEN) is a small-cap stock that offers its shareholders a big %Dividend payment.
Known for its hamburgers and fries, Wendy's also serves up a quarterly dividend payment of $0.14 U.S. per share, giving it a hefty yield of 5.43%.
That's one of the highest dividend yields on Wall Street and among competing restaurant chains.
Consider that rival %McDonalds (NYSE: $MCD) currently pays a quarterly distribution that yields 2.77%, less than half of what Wendy's pays.
Among companies listed on the benchmark S&P 500 index, the average dividend yield is only 1.25%, a fraction of Wendy's payout.
Wendy's has actually reduced its dividend from a 10% yield previously. Analysts on Wall Street praised the dividend cut, saying the new distribution is more sustainable for the company.
Still, Wendy's pays more than 90% of its earnings out as dividends to shareholders.
As is often the case, the high dividend comes at the expense of share price performance, with WEN stock declining 38% over the last 12 months.
However, Wendy's stock looks cheap trading at just 10 times forward earnings estimates. The share price is also hovering near a 52-week low, presenting a buy-the-dip opportunity.
A market capitalization of less than $2 billion U.S. makes Wendy's a small-cap stock.
And while the company has struggled with intense competition in recent years, analysts see improvements on the horizon.
The company recently reported earnings per share (EPS) of $0.29 U.S., which surpassed Wall Street estimates by 15%.
Analysts say that Wendy's financial results and stock should improve in coming quarters if U.S. consumer spending holds up and the American economy remains resilient.
In the meantime, shareholders can collect a large dividend from this small-cap stock.
COMTEX_467986523/2848/2025-08-12T10:10:40
